JD.com (Jingdong) reported a net revenue of 104.8 billion yuan (US$15.3 bn) in Q3 2018, an increase of 25.1% year-on-year. Annual active customer accounts increased to 305.2 million in the twelve months ended September 30, 2018 from 266.3 million in the same period last year.
Shares of JD.com plunged as much as 4% before Monday’s opening bell after the company posted worse-than-expected revenue for Q3 2018.
Operating margin of JD Mall before unallocated items for Q3 2018 was 2.2%, as compared to 2.3% for the same period last year.
Net service revenues were 10.9 billion yuan (US$1.6 billion), an increase of 49.4% year-on-year. Net income from continuing operations attributable to ordinary shareholders for Q3 2018 was 3.0 billion yuan (US$0.4 billion), compared to 1.0 billion yuan for the same period last year.
Non-GAAP net income from continuing operations attributable to ordinary shareholders for Q3 2018 was 1.2 billion yuan (US$0.2 billion), compared to 2.2 billion yuan for the same period last year.
Diluted net income per ADS from continuing operations for Q3 2018 was 2.03 yuan (US$0.30), compared to 0.69 yuan for Q3 2017. Non-GAAP diluted net income per ADS from continuing operations for Q3 2018 was 0.80 yuan (US$0.12), compared to 1.52 yuan for Q3 2017.
Recent Business Highlights
JD.com’s premium membership program JD Plus surpassed 10 million users in September 2018.
Cosmetics brands including L’Occitane de Provence, HOUSE 99 and Hera, and fashion brands including Salvatore Ferragamo and Furla, opened flagship stores on the JD.com platform. JD’s dedicated luxury platform TOPLIFE also welcomed John Galliano, Buccellati, Shang Xia, and other major international brands.
JD.com entered into strategic agreements with textile and fashion giant Ruyi to provide premium technology and infrastructure solutions covering smart logistics, inventory management, and marketing in Q3 2018. Four international menswear brands under Ruyi-owned Trinity Group, including Gieves & Hawkes, Kent & Curwen, Cerruti 1881, and D’Urban opened flagship stores on JD.com.
JD.com launched its “Zu Chongzhi” platform in September, leveraging its comprehensive big data and supply chain capabilities to enable offline retailers to conduct real-time store performance analysis, marketing campaigns, merchandise selection, site selection, and public opinion monitoring and management.
JD Logistics opened up its leading logistics network to consumers in October, offering parcel delivery service to users, beginning in Beijing, Shanghai, and Guangzhou. Leveraging JD’s extensive delivery network, users in these areas can conveniently send items intra-city and throughout most of mainland China with JD’s same fast and reliable delivery service.
JD Logistics launched an initiative allowing consumers to receive reward points by choosing recycled packaging for their orders in Q3 2018. The service was trial launched in Beijing, Shanghai, and Guangzhou and is expected to expand to dozens of cities in the near future. JD Logistics also joined hands with corporate partners to promote recycled packaging across the entire supply chain.
JD.com’s joint venture, Dada-JD Daojia, announced the completion of a new US$500 million financing round with investments from Walmart and JD in August. The financing marks a new stage in the companies’ partnership to explore innovative “Boundaryless Retail” solutions.
Leveraging Dada’s crowd-sourcing delivery network, Dada-JD Daojia has partnered with Walmart, Yonghui, Carrefour, CR Vanguard, Family Mart, LAWSON, and numerous other supermarkets and grocery stores covering 63 cities, to provide a premium online fresh grocery shopping experience with one-hour home delivery service. Dada-JD Daojia is China’s leading on-demand logistics and omnichannel e-commerce platform.
JD.com operated over 550 warehouses covering an aggregate gross floor area of approximately 11.9 million square meters in China. It had approximately 200,000 merchants on its online marketplace and a total of 175,366 full-time employees as of September 30, 2018.